The S&P/TSX composite index dipped 0.52 of a point to 12,743.59 following a 134-point tumble Wednesday.

The Canadian dollar was up 0.03 of a cent at 97.37 cents US.

U.S. indexes were higher as positive employment news raised hopes that a strong rally in place so far this year has a ways to go yet.

The Dow industrials headed for another record close, up 52.61 points to 14,507.89, as fewer Americans sought unemployment aid last week, reducing the average number of weekly applications last month to a five-year low.

The U.S. Labour Department says applications fell 10,000 to a seasonally adjusted 332,000. That pushed the four-week average to 346,750, the lowest since March 2008, just several months after the Great Recession began.

The Nasdaq was up 8.85 points to 3,253.97 while the S&P 500 index rose 4.88 points to 1,559.4.

The Dow has finished higher for the past nine straight sessions — its longest winning run since 1996 — and established fresh record highs.
Traders also focused on the S&P 500, which is less than 10 points from its own all-time high.

The strong performance in March has carried on a rally that started early in the new year after American politicians stopped the economy going over the so-called fiscal cliff. The higher returns have since been supported by assurances that the U.S. Federal Reserve will continue with its stimulus programs, strong fourth-quarter earnings, steady employment gains and an improving housing sector.

That has left the Dow industrials up a solid 10% in just 2 1/2 months as investors from around the world put more and more money into the U.S. markets.

“There is an inflow of capital to the U.S. market from almost everywhere, you see it coming out of gold, you see it coming out of cash, bonds, the TSX and other indexes,” said Kash Pashootan, vice-president and portfolio manager at Raymond James in Ottawa.

He thinks the rally still has momentum and that belief is backed by continuing signs of a stronger economy.

As for worries that the rally is looking stretched, Pashootan observed that “the market will be volatile and it almost doesn’t matter what the reasons are, as things go up it will look for a reason to retrace.”

“But those corrections will be buying opportunities. So on the investment strategy, my view is having a little bit of cash on the sidelines to take advantage of those dips.”

The April crude contract on the New York Mercantile Exchange shed early losses following the release of the jobless claims data and added 16 cents to US$92.68 a barrel. The energy sector rose 0.6% and Canadian Natural Resources (TSX:CNQ) rose $1.01 to $33.

The gold sector was up 0.16 per cent while April bullion faded $3.20 to US$1,585.20 an ounce. Kinross Gold (TSX:K) added nine cents to $8.06.

Telecoms were also positive as Telus Corp. (TSX:T) gained 61 cents to $69.02. The Vancouver-based telecom announced a two-for-one split of its common shares, effective April 16 subject to regulatory approval.

The base metals sector was off 0.5 per cent as May copper gained a cent to US$3.54 a pound. HudBay Minerals (TSX:HBM) declined 12 cents to $10.

On the corporate front, Pierre Karl Peladeau is stepping aside as president and chief executive of Quebecor Inc. (TSX:QBR.B) and Quebecor Media Inc. but will remain with the companies and oversee corporate strategy. The new president and CEO of the Quebec-based media giant will be Robert Depatie, who has been president and CEO of Quebecor’s Videotron cable and telecom service since 2003.

Quebecor shares fell $2.17 to $43.90 as the company also announced that its net income plunged to $9.2-million or 15 cents per share in the latest quarter, a decline from $85.4-million or $1.34 per share from a year earlier — mostly due to non-cash items required under standard accounting.

Integrated vacation tour operator Transat A.T. Inc. (TSX:TRZ.B) posted a quarterly net loss of $15.1-million or 39 cents per share on a diluted basis. That almost halved its net loss of $29.5-million a year ago. Revenue slid 2.8% to $805.7-million.

Meanwhile, the company reported an adjusted after-tax loss of $21.6-million or 56 cents per share in the quarter and its shares slipped 24 cents to $6.02.

Aurizon Mines Ltd. (TSX:ARZ), which is attempting to fend off a hostile takeover, says its net quarterly profit was $9.4-million or six cents a share, which met expectations. However, it was less than half the 13 cents per share reported a year earlier.

Aurizon’s quarterly revenue was $56.2-million and its shares were off two cents to $4.39.

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